An introduction to Alpha+ Capital ManagementIn the business of investments, the term “alpha” refers to investment performance in relation to risk and in comparison to a neutral standard. A positive (+) alpha indicates a superior investment result, attributable to either good management, good luck, or some of each.Alpha+ creates investment portfolios using selected no-load mutual funds as building blocks– and adds a technique which is not practical for use by mutual funds themselves. The technique is moderately flexible asset allocation based on our personal grasp of economies, markets, and the condition we are in now.

The end result is that portfolios ranging in size from less than $500,000 to $20 million can enjoy diversification, breadth of economic and market analysis, intensity of individual stock and bond research, and cost efficiency similar to that enjoyed by the largest pension portfolios.

Who needs an investment manager?Those fortunate enough to have more money than needed for daily living also have the responsibility of caring for their wealth. Others come upon the responsibility as a job assignment. Like a good stand of timber, if nurtured, pruned and regenerated, wealth can be maintained indefinitely. If neglected or mishandled, it will wither.

Successful money makers may not relish the tasks required for a proper job of asset management. Often, time is not available to absorb economic data and sort fact from fiction in the steady stream of investment advice and commentary. Playing the market can be enjoyable but is not to be confused with “serious” investing. Alpha believes investing is a full-time job which should be approached professionally. A well chosen manager should more than pay his way. The wealth owner can better use his skills, first, to find an investment manager whose attitudes and procedures mesh comfortably with his own and, afterwards, to monitor the performance and services provided.

The type of manager selected also helps to determine success. The practical choice is a “generalist,” able to evaluate the risk and return potential of a broad range of investment assets. The most workable approach is to create a unified interest by linking the manager’s compensation to the total of the assets under management – so that what’s good for the manager is exactly the same as what’s good for the investor.

If professional management is a good idea for personal wealth, it is imperative for ERISA employee benefit funds. Alpha’s approach covers all the bases for fiduciaries – asset allocation, top grade mutual fund management and diversification on a global scale.

Alpha+ Capital Management serves investors who are aware that they need professional management and want it.Return to top of page »